In a disturbing escalation of crypto-related crime, Festo Ivaibi, the founder of Uganda-based cryptocurrency education platform Mitroplus Labs, was abducted at gunpoint on May 17 and forced to transfer $500,000 worth of digital assets to his attackers.
According to a statement from the Afro Token Project, an initiative under Mitroplus Labs, Ivaibi was kidnapped near his home on Bunamwaya Road in Kampala. The armed assailants, reportedly dressed in military uniforms and impersonating Uganda People’s Defence Forces (UPDF) personnel, coerced him into unlocking his crypto wallets and completing unauthorised transfers.
Armed Abduction Linked to Crypto Wallet Breach
The attackers also sold off portions of Afro Token, a meme coin developed by Mitroplus Labs and launched on the SunPump platform built on the Tron blockchain. This incident resulted in significant financial losses and market damage.
Mitroplus Labs stated, “This is more than an attack on an individual; it’s a direct threat to a growing crypto ecosystem.”
Afro Token Plummets After Attack
Following the forced sale, Afro Token’s market cap dropped by 16.7%, falling to approximately $1.6 million, compared to a peak of $7.3 million in December 2024, according to DEX Screener. Part of the stolen funds reportedly ended up in Binance wallets, although the exact cryptocurrencies involved have not been confirmed.
Rise of Crypto-Focused Kidnappings and “Wrench Attacks”
Mitroplus Labs warns this is not an isolated event. The company claims that over 48 similar abduction attempts have been documented, involving networks of imposters posing as crypto traders, corrupt law enforcement officers, and foreign nationals, including two Chinese individuals.
These crimes, known as “wrench attacks,” involve the physical coercion of crypto holders to extract wallet access under duress. Recent months have seen a global increase in such violent attacks targeting high-value crypto investors.
Global Trend of Crypto-Related Violence
- Earlier this year, David Balland, co-founder of Ledger, was kidnapped and mutilated in a ransom case.
- In February, a crypto broker suffered broken ankles trying to flee his captors.
- Just weeks ago, police rescued the father of a crypto entrepreneur after an $8 million ransom demand.
The growing frequency of crypto-related kidnappings is raising alarm across the blockchain community. Security experts and investors are now calling for enhanced personal security measures and improved legal frameworks to protect digital asset holders worldwide.
